The US economy is "healthy", the risk of recession is pushed back

On June 7, US Treasury Secretary Janet Yellen said that the US economy is healthy, amid rapid growth in consumer spending.

The US expects to continue making progress in reducing inflation. (Source: Xinhua)

Consumer spending continues to grow strongly, but sectors of the economy are slowing and reducing inflation is a top priority, according to the US Treasury Secretary.

Ms. Yellen expects inflation to ease while maintaining a strong labor market, with the unemployment rate in the 4% range, up slightly from 3.7% in May 2023.

"The world's largest economy has slowed somewhat, easing pressure on the labor market, but the labor market remains very strong and wages have risen significantly," she said.

The bill suspending the debt ceiling and reducing the US deficit by more than $1 trillion over the next 10 years would also support the Federal Reserve's efforts to reduce inflation.

Regarding the banking sector, the US Treasury Secretary said that although banks may have difficulties with commercial real estate and face some consolidation, the system still has ample liquidity and banks can generally withstand any stress.

Previously, on June 6, Goldman Sachs bank adjusted down the risk of a US economic recession in the next 12 months.

Specifically, the investment bank has lowered the risk of the world's largest economy falling into recession from 35% to 25% for two main reasons.

First, Congress recently passed a bipartisan agreement to suspend the debt ceiling, which calls for modest spending cuts that will keep “overall fiscal momentum neutral” over the next few years.

Second, analysts are more certain about the impact of banking stress on real gross domestic product (GDP) growth in the country.

Source: https://baoquocte.vn/kinh-te-my-dang-manh-khoe-nguy-co-suy-thoai-duoc-day-lui-230191.html